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U.S. Software Industry Analysis

UpdatedAug 26, 2026
DataAggregated Company Financials
Companies427
  • 7D1.0%
  • 3M14.0%
  • 1Y-5.6%
  • YTD1.8%

The Software industry is up 1.0% in the last week, with Microsoft up 2.4%. During this same period, the Palo Alto Networks underperformed, falling 5.7%. However, the industry is down 5.6% over the past year. As for the next few years, earnings are expected to grow by 21% per annum.

Industry Valuation and Performance

Has the U.S. Software Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 27 Aug 2026US$6.8tUS$713.5bUS$138.7b31x49.3x9.6x
Sat, 25 Jul 2026US$5.6tUS$700.4bUS$157.1b27.8x35.7x8x
Mon, 22 Jun 2026US$5.8tUS$698.5bUS$156.5b25.9x36.9x8.3x
Wed, 20 May 2026US$6.2tUS$685.9bUS$154.9b26.7x40x9x
Fri, 17 Apr 2026US$5.8tUS$668.1bUS$157.3b29.1x36.8x8.7x
Sun, 15 Mar 2026US$5.7tUS$669.3bUS$161.5b27.8x35.4x8.5x
Tue, 10 Feb 2026US$5.8tUS$662.5bUS$162.0b28x35.7x8.7x
Thu, 08 Jan 2026US$7.0tUS$648.9bUS$165.0b32.7x42.7x10.9x
Sat, 06 Dec 2025US$7.2tUS$641.9bUS$162.0b31.5x44.3x11.2x
Mon, 03 Nov 2025US$7.8tUS$636.9bUS$158.3b34.9x49.3x12.3x
Wed, 01 Oct 2025US$7.8tUS$621.0bUS$151.9b36.3x51.4x12.6x
Fri, 29 Aug 2025US$7.4tUS$616.1bUS$150.6b34.9x49x12x
Sun, 27 Jul 2025US$7.6tUS$597.2bUS$130.9b45.7x57.8x12.7x
Tue, 24 Jun 2025US$7.1tUS$599.0bUS$131.1b41.8x54.4x11.9x
Thu, 22 May 2025US$6.8tUS$591.7bUS$131.4b35.5x51.4x11.4x
Sat, 19 Apr 2025US$5.5tUS$580.5bUS$131.7b30x41.7x9.4x
Mon, 17 Mar 2025US$5.9tUS$582.9bUS$131.2b28.1x44.7x10.1x
Wed, 12 Feb 2025US$6.6tUS$586.3bUS$132.4b42.9x49.7x11.2x
Fri, 10 Jan 2025US$6.4tUS$569.1bUS$129.0b39.1x49.4x11.2x
Sun, 08 Dec 2024US$6.9tUS$566.7bUS$128.2b43.4x53.5x12.1x
Tue, 05 Nov 2024US$6.0tUS$562.0bUS$126.3b38.4x47.5x10.7x
Thu, 03 Oct 2024US$6.0tUS$551.7bUS$124.1b38.4x48.8x11x
Sat, 31 Aug 2024US$5.8tUS$551.5bUS$122.1b38.3x47.4x10.5x
Mon, 29 Jul 2024US$5.8tUS$532.0bUS$117.8b40.7x49x10.8x
Wed, 26 Jun 2024US$5.9tUS$531.3bUS$118.0b39.5x49.8x11.1x
Fri, 24 May 2024US$5.4tUS$474.8bUS$105.4b41.3x51.4x11.4x
Sun, 21 Apr 2024US$5.0tUS$466.6bUS$98.4b43.1x51.3x10.8x
Tue, 19 Mar 2024US$5.3tUS$466.7bUS$97.8b44.8x54.7x11.5x
Thu, 15 Feb 2024US$5.3tUS$464.6bUS$90.2b42.4x58.8x11.4x
Sat, 13 Jan 2024US$5.3tUS$486.2bUS$82.2b46.2x64.1x10.8x
Mon, 11 Dec 2023US$5.1tUS$485.6bUS$82.5b47.1x61.3x10.4x
Wed, 08 Nov 2023US$4.7tUS$481.2bUS$79.4b43.7x58.8x9.7x
Fri, 06 Oct 2023US$4.4tUS$477.3bUS$73.4b44.7x60x9.2x
Sun, 03 Sep 2023US$4.6tUS$475.8bUS$72.6b44.8x63.4x9.7x
Price to Earnings Ratio

63.4x


Total Market Cap: US$4.6tTotal Earnings: US$72.6bTotal Revenue: US$475.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 49.2x202420252026
Current Industry PE
  • Investors are relatively neutral on the American Software industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 49.2x.
  • The 3-year average PS ratio of 10.6x is higher than the industry's current PS ratio of 9.5x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 24% per year over the last three years.
  • Revenues for these companies have grown 14% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Tech industry?

US Market-0.31%
Tech-1.88%
Software1.02%
Application Software2.76%
Systems Software0.40%
Industry PE
  • Investors are most optimistic about the Systems Software industry even though it's trading below its 3-year average PE ratio of 38.2x.
    • Analysts are expecting annual earnings growth of 17.9%, which is lower than the prior year's growth of 20.4% per year.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 29% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 18% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
MSFT MicrosoftUS$496.373.2%
+US$113.0b		-2.6%PE27.6x
ORCL OracleUS$148.873.5%
+US$14.6b		-36.9%PE25.2x
PLTR Palantir TechnologiesUS$177.502.0%
+US$8.5b		12.3%PE141.4x
MSTR StrategyUS$123.1918.2%
+US$7.3b		-64.0%PS95x
CDNS Cadence Design SystemsUS$334.686.3%
+US$5.4b		-3.5%PE66.9x

Latest News

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WDAY
US$190.75
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7D
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1Y
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